MAM

Digital fuels growth in Africa’s entertainment & media industry: PwC

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/09/18/Untitled-1.jpg?itok=Iv_j9GjU

MUMBAI: After more than a decade of digital disruption, the African entertainment and media industry has entered a new landscape – one where the media is no longer divided into distinct traditional and digital spheres, according to a report from PwC titled Entertainment and media outlook: 2015 – 2019 (South Africa – Nigeria-Kenya). 

 

The Outlook forecasts that South Africa’s entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019, at a compound annual growth rate (CAGR) of 9.4 per cent. Digital spend is expected to fuel the overall growth. South Africa’s Internet access market will rise rapidly from R32.5 billion in 2014 to R76.2 billion in 2019, far ahead of any other consumer spend category, making it the largest contributor to South Africa’s total entertainment and media revenues.

 

PwC Southern Africa entertainment and media leader Vicki Myburgh said, “This year’s Outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile. Increasingly, though, it’s clear that consumers see no significant divide between digital and traditional media – what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content.”

 

“Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access. This includes shared physical experiences like cinema and live concerts, which appear re-energised by digital and social media,” Myburgh added.

 

The Outlook presents annual historical data for 2010–2014 and provides annual forecasts for 2015–2019 in 11 entertainment and media segments for South Africa, Nigeria and Kenya: the Internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, magazine publishing, book publishing, out-of-home advertising and radio.

 

Aside from the Internet, the Outlook predicts that the fastest growth will be seen in video games, business-to-business and filmed entertainment. “But it is Internet access itself that is acting as a driver of revenues in video games and film, creating new revenue streams by making over-the-top (OTT)/streaming or social/casual gaming viable to more consumers and thereby cancelling out physical falls,” added Myburgh.

 

Music, magazines and newspapers, which will show only moderate consumer growth, are three segments that face strong competition from the Internet. The music market was worth R2.01 billion in 2014, compared to R2.08 billion in 2013. Annual revenue is forecast to grow marginally by a CAGR of 1.3 per cent over the next five years to remain relatively flat at R2.1 billion in 2019.

 

Television remains a highly significant contributor to consumer spending, with combined revenues from TV subscriptions, advertising and licence fees projected to reach R40.9 billion by 2019. The report also shows that one consistent trend – and not just in South Africa, but globally – is the rise in overall consumer spending through to 2019 on video-based content and services, against far flatter prospects for spending on primarily text-based content and services. If consumer revenue from TV subscriptions and licence fees is aggregated with that from video games, around R4.5 billion will be added between 2014 and 2019.

 

In contrast, consumer revenue from books, magazines and newspapers is expected to rise by just R1.3 billion over the entire forecast period.

Alongside video providers, a further thriving source of revenue over the coming five years will be live events. Revenue from live music is expected to grow at a CAGR of 7.9 per cent in the next five years, reaching R1.5 billion in 2019, up from R1 billion in 2014. Box office revenues are also steadily increasing at a CAGR of three per cent to reach R972 million by the end of the forecast period.

 

The appeal of live entertainment has also had a positive effect on the related advertising revenues. South African cinema advertising revenue is also rising at a CAGR of 6.7 per cent and will be worth an estimated R884 million in 2019. “It is clear that consumers value – and are willing to pay a premium for – real-life physical entertainment experiences, and these in turn are the types of consumers that advertisers wish to target,” said Myburgh.

 

The report shows that South Africa’s total entertainment and media advertising revenue is expected to rise by 5.6 per cent from R39.7 billion in 2014 to R52.1 billion in 2019. TV advertising is by far the largest contributor to total advertising revenues, followed by newspaper advertising: however, their combined 52 per cent share of total advertising in 2014 will fall slightly to 51 per cent in 2019.

 

Despite the strong projections for advertising, its share of the entertainment and media mix is predicted to decrease by 2019 as consumer spending takes an ever larger part of the pie; from 35 per cent in 2014, advertising will account for just 30 per cent of spending in 2019.

 

“Affordable Internet access will continue to digitally disrupt the market in novel and innovative ways. The ongoing spread of services to mobile networks, novel devices and emerging markets will change how media and entertainment are served, consumed and monetised in multiple ways. Affordable Internet access will also inhibit the revenue growth of various sectors as consumers use it to access free, ad-funded and lower-priced subscription-based versions of new and existing media services,” said Myburgh.

 

Nigeria

Nigeria’s entertainment and media market grew by 19.3 per cent in 2014 to reach $4 billion. By 2019, the market will be more than twice as big, with an estimated total revenue of $8.1 billion. As in South Africa, the Internet will be the key driver of growth for Nigeria. Television, comprising revenue from TV advertising and subscriptions, is the other main driver.

 

Excluding Internet access, television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years.

 

Consumer spend on video games and music is set to see the sharpest rise in forecast CAGRs at 14.3 per cent and 11.4 per cent, respectively. Piracy continues to remain a problem in Nigeria, limiting growth across several entertainment and media sectors.

 

Kenya

Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.

 

Again, the Internet is expected to be the largest driver of growth, followed by television and radio. TV advertising will overtake radio in 2016, and Internet advertising will see the fastest growth rate at a CAGR of 16.8 per cent. Traditional mediums such as TV, radio and newspapers will continue to be the first choice for most Kenyan advertisers in the foreseeable future.

Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.

 

“Today’s media companies need to do three things to succeed: innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer’s experience,” concluded Myburgh.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/mxus.jpg?itok=LmENWAyo
'17 IPL buzz doubled, Virat sliped six spots & Voda had most engaging content

Maxus, the global media agency of GroupM, has analysed the social conversations that happened around IPL Season 10. This study has been done by Maxus Mesh – the marketing command center and dialogue engine that reads environmental signals in real-time.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/Sandeep%20Dadlani%20and%20Mike%20Clayville.jpg?itok=SfrGBep_
IGS-powered Infosys Data Lake on Amazon Web launched

MUMBAI: Infosys, a global leader in consulting, technology, outsourcing and next-generation services, announced the launch of the Infosys Boundaryless Data Lake offering powered by its Information Grid Solution on Amazon Web Services (AWS).The solution allows enterprises to do more with their data...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/Joy%20Mohanty.jpg?itok=HCeHJDo_
Volini gets a #PatOnTheBack from Lintas

MUMBAI: We as children have been our parents’ top priority, sometimes even at the cost of their well-being and happiness. While the pain they took mostly remains hidden from us, can we ever give back enough? We know, we can’t; but isn’t there joy in the attempt.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/Susan%20Josi%20and%20Sangeeta%20Barde.jpg?itok=Cy_yR2Vn
Havas Health & You to broaden APAC offering with Sorento buy

MUMBAI: Havas Group is expanding its capabilities and footprint in the important and burgeoning Indian market by adding Sorento to its roster of agencies. Sorento will integrate the Havas Health & You business unit and be rebranded Havas Life Sorento. This strategic acquisition will allow Havas...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/asci.jpg?itok=7aeMmdUa
ASCI bags gold award for mobile app 'ASCIonline'

The Advertising Standards Council of India (ASCI) has bagged the gold award for their Mobile App “ASCIonline” to receive consumer complaints against false advertisement at the Global EASA Best Practice Awards 2016.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/icc.jpg?itok=ob5d-Vso
Maxus wins media mandate for ICC Champions & ICC Women’s World Cup

Marketing communications consultancy Maxus has won the media mandate in India for ICC Champions Trophy and ICC Women’s World Cup 2017 to help marketers build profitable relationships between consumers and their brands.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/24/NDTV-Mastercard.jpg?itok=vyHlQUrZ
Cashless Bano India movement launched by NDTV & Mastercard

NEW DELHI: 'Cashless Bano India', a campaign aimed at accelerating the adoption of digital forms of payments through an on-ground and TV campaign, has been launched to educate the masses about digital payment solutions and encourage its usage for everyday spends. This campaign launched by NDTV...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/domnic.jpg?itok=KjiuLvwm
Havas develops CTS transparent client facing programmatic solution

Client Trading Solution (CTS) - a game-changing programmatic solution that gives clients complete visibility and control over their campaigns – has been launched by meta programmatic solutions pioneer Havas Group to act as a control tower, offering clients complete visibility across trading desks,...

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/23/mauresh.jpg?itok=q8a6GxkA
Mayuresh U. Dubhashi new executive creative director at Grey group India

Grey group India has appointed veteran advertising expert Mayuresh Dubhashi as its executive creative director.

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories